PA lawmakers introduce bipartisan legislation to legalize cannabis 🚀

KEYSTONE STATE
Bipartisan lawmakers in Pennsylvania introduce legislation to legalize cannabis

Driving the news: It looks like Pennsylvania may have a bipartisan solution to its long-running legalization stalemate.

Democrats are largely in favor of legalizing cannabis in the Keystone State, but Republicans hold a slim, 27-23, majority in the Senate, which means at least some bipartisan support is necessary to pass bills.

Pennsylvania has over 13 million residents and its medical cannabis program pulled in $1.7 billion in sales throughout 2024, according to state data. The state is surrounded by legal cannabis markets in Ohio, New York, New Jersey and Maryland, while Delaware is poised to join that club next month.

Republican Sen. Dan Laughlin introduced SB 120 on June 10, along with four Democrat co-sponsors. The bill establishes a Cannabis Control Board, sets a 14% total tax rate and will allow private businesses to be licensed as dispensaries.

What they’re saying: "The bill is smart, fair and realistic. It's time Pennsylvania joined the growing number of states that are getting cannabis policy right." Laughlin said.

And also: "Proud to join [Sen. Laughlin] to introduce SB120 – our bipartisan bill to legalize adult-use cannabis in PA. It creates a smart regulatory framework, clears past convictions, and invests in communities hit hardest by prohibition. It's time to get this done." Democratic co-sponsor Sen. Sharif Street said on social media.

From state-run to private: Street and Laughlin are no strangers to working together. The duo filed a bipartisan legalization bill in 2023, which failed to make it out of the Senate's Law and Justice Committee.

House Democrats passed a legalization bill, HB 1200, in May.

Laughlin, who has since become chair of the Senate Committee on Law and Justice, was a major barrier to a previous attempt at a legalization bill from earlier this year. That bill would have included state-run dispensaries, which Laughlin, and most Republican lawmakers in Pennsylvania, are opposed to.

There’s support for legalization: So far, cannabis advocates are in favor of the bill and hopeful this one can finally bring legalization across the finish line.

“With a viable, bipartisan bill on the table, there is no excuse for further delay. Pennsylvania is staring down a massive budget shortfall, and this legislation offers a real solution: new revenue, safer communities, support for small businesses, and long-overdue justice,” Responsible PA spokesperson Brit Crampsie said.

“Lawmakers must act now—our economy, our communities, and our future can’t afford to wait.” said

What’s next: The bill is currently before the Senate Committee on Law and Justice. We’ll see if it fares any better than the last cannabis bill that went before that committee.

-ZH

Senate pauses proposed hemp ban for at least one year ⏸️

Intoxicating hemp is still on the federal chopping block, but it may have at least one year of reprieve. The Senate Appropriations Committee passed a spending bill that, much like its House counterpart, would close the so-called ‘hemp loop-hole’ created by the 2018 Farm Bill, by outright banning intoxicating hemp. The Senate version includes a one-year pause before that ban goes into effect, to allow the Senate to find a middle ground where not all hemp products face prohibition, just those with intoxicating effects. Read the full bill text.

California Senators advance bill to freeze excise tax increase 🛑

California lawmakers advanced a bill that would freeze the excise tax increase — from 15% to 19%, which went into effect on July 1 — by October. The legislation, introduced by Sen. Matt Haney (D), passed the Senate Revenue And Taxation Committee by a vote of 5-0. California cannabis companies say the tax increase would destroy the struggling industry. Read the legislation. 

Virginia cannabis regulators hold first meeting 🚩

The Virginia Joint Cannabis Commission, established in early 2025, held its first meeting on July 9, marking a significant step in regulating the state’s cannabis industry. At the meeting: Paul Krizek (“D-Fairfax”) was elected chair, and the commission outlined the twin goals of protecting the public and regulating and taxing the commercial cannabis industry. The commission also stated that it will craft a legislation proposal for 2026 when the state will have a new governor. Virginia Gov. Glenn Youngkin, a Republican, previously vetoed legalization passed by the state’s legislature. 

ICE raids Glass House Farms 🧊

Glass House Farms, a California cannabis company, was raided on July 10 by ICE. The agency conducted two simultaneous raids on the company’s farms in Carpinteria and Camarillo. Some might suggest these raids in California to be politically motivated in “blatantly” targeting a blue state.

California stands firm against illegal cannabis 💪

California Gov. Gavin Newsom announced that the state seized $476 million worth of illegal cannabis between April and June. He credited the Unified Cannabis Enforcement Task Force (UCETF), the Department of Cannabis Control (DCC), and the Department of Fish & Wildlife (CDFW).

Auxly restructures debt with BMO 🏦

Canadian cannabis firm Auxly eliminated about $21 million in debt and restructured its credit facility with BMO, significantly improving its balance sheet and removing its going-concern warning. The company also settled obligations with Imperial Brands through a share-and-warrant deal, reducing interest costs but introducing potential dilution.

North American cannabis market projected to go sky high 🚀

North America’s cannabis market (namely the U.S. and Canada), valued at around $45 billion is projected to grow to $355 billion in the next 10 years with a compound annual growth rate of 24.55%, per a new report. This growth is expected based on expanding legalization, “medical applications, and product diversification,” in addition to improved regulation and cultivation methods.

Canopy Growth terminates CFO 👀

Judy Hong is out as CFO at Canopy Growth. The Canadian cannabis giant said that the termination was without cause and not related to performance. Canopy promoted Thomas Stewart to interim CFO. Stewart has been with Canopy since 2019 and most recently served as VP of Finance. The stock dropped about 6% on Thursday.

NJ has a new cannabis head 🌿

Harris Laufer will be the new commissioner of the New Jersey Cannabis Regulatory Commission after a bill that approves the appointment was signed into law. Read more from HeadyNJ.

Members of the Massachusetts Cannabis Control Commission discussed their state’s total canopy during their monthly meeting on July 10. 

The commission considered how it should apply its relegation rule that allows the state to reduce a license holders’ tier if they harvested less than 70% of their total allowable canopy in the six months preceding their annual license renewal. 

Massachusetts cultivators are licensed to produce almost 5 million square feet of canopy at a time. 

Basically, if you don’t use it, you lose it. 

Compared to other states, Massachusetts has one of the greatest variety of cultivation tiers, and is among those that allow the largest canopy for a single license. So there is a wide range of movement that could theoretically take place between tiers. 

As the Massachusetts market continues to mature, regulators anticipate they’ll have to keep a closer eye on total canopy, hence the review of their ability to relegate tiers. 

-ZH

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